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EMERGING MARKETS-Brazil real gains as cenbank keeps FX intervention
February 2, 2015 / 12:06 PM / 3 years ago

EMERGING MARKETS-Brazil real gains as cenbank keeps FX intervention

RIO DE JANEIRO, Feb 2 (Reuters) - The Brazilian real gained on Monday after the central bank indicated it would roll over all of the currency swaps that expire in March, keeping its intervention in the foreign exchange market unchanged.

The real rose 0.8 percent, leading gains among Latin American currencies. It dropped about 3 percent on Friday as comments by Finance Minister Joaquim Levy fueled speculation that the government could reduce its support for the currency.

After markets closed, however, the central bank announced it would sell as many as 13,000 swaps on Monday to renew similar contracts that mature in March. If it keeps offering the same number of contracts per day through the end of February, it will roll over nearly 100 percent of $10.44 billion worth of swaps maturing on March 2.

Currency swaps are derivative contracts that provide investors with protection against currency losses and are used by the central bank to support the real.

Other Latin American currencies posted more modest gains, with the Mexican peso 0.4 percent stronger. (Reporting by Walter Brandimarte; Editing by Jeffrey Benkoe)

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